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Asset based lending in business environments

Asset Based Lending

What is Asset Based Lending?

While traditionally businesses will often look to banks for loans, asset based loans are an alternative method of funding where collateral is the main criteria for approval. It is a popular method for companies that want to take advantage of potential growth opportunities, but have bad or no credit history.

Asset based lending is essentially the lending of a secured or collateralized asset. It is used as a method to fund assets that are not normally funded in a loan. The loans are often tied to accounts receivables, inventory, land and equipment. There is also an extensive analysis of the company’s financials, current cash flow, and the future projections. It is a popular method when immediate capital is necessary or payment timelines are varied.

The amount that is funded is largely dependant on the value of the asset itself. The asset is only taken as collateral if the payments are defaulted. As long as your business is in good financial standing and is believed to be profitable, then asset based financing may be the best option for short-term financial relief.

It also allows your business to maintain a much steadier cash flow when sales are based on seasonal business cycles. This is critical when you need to do large inventory orders to meet the demand of the peak season.

Get Started Today! Rates start as low as 0.75%. Click Here for more information contact us by email or phone at 1 (855) 800-5525. We help businesses across Canada get the financing they need!

Toronto - Quebec - Vancouver - Calgary - Winnipeg - Ottawa - Edmonton - Regina

Is an Asset Based Loan Right for You?

For companies that are growing at an exponential rate, they can often run out of capital to sustain their growth. Companies that have strong accounts receivables or are mainly inventory based, have the funds of a profitable company but just don’t have the capital they need. This is where Able Business Credit can get you the capital necessary to continue to grow.

If you need more information about asset based loans, feel free to email us or give us a call at 1-855-800-5525.